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This paper studies the effects of financial liberalization and banking crises on growth. It shows that financial liberalization spurs on average economic growth. Banking crises are harmful for growth, but to a lesser extent in countries with open financial systems and good institutions. The...
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According to the classical view, an economy's lender of last resort should be its central bank. For brief periods of … time, the bank might suspend convertibility in order to provide the liquidity needed to support the domestic credit market … the Swedish central bank, for a limited time, could support the credit market within the limits of the specie standard, if …
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